ATTORNEY GENERAL SCHNEIDERMAN ANNOUNCES $18 MILLION MEDICAID FRAUD SETTLEMENT WITH STATE’S LARGEST RESIDENTIAL SERVICE PROVIDER
Young Adult Institute Inflated Expenses to Justify Reimbursement of Excess Medicaid Dollars NEW YORK, NY - Attorney General Eric T. Schneiderman today announced a settlement with Young Adult Institute, Inc. (YAI), organization officials Philip H. Levy and Karen Wegmann, and former CEO Joel M. Levy, resolving allegations that they defrauded the Medicaid program. YAI, the state’s largest residential service provider, will pay $18 million in damages, and significantly reform their cost reporting practices. “Restoring New Yorkers' faith in their government and cracking down on those who try to defraud the taxpayers will be two of our top priorities in this office," Attorney General Schneiderman said. "Today’s announcement should send a clear message that we will leave no stone unturned in the fight against Medicaid fraud, waste and abuse in New York State.”